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Non-Tech : Home Depot (HD) -- Ignore unavailable to you. Want to Upgrade?

To: John Carson who wrote (128)	3/31/1998 6:29:00 PM
From: JEFF	Read Replies (1) \| Respond to of 1169

John thanks for the report. made for some good reading. this is why i really like home depot. its really very simple. when i go into the stores they are full and then i go over to home quarters and lowes and they are not very busy. want to have some fun. go into a home depot on a sat. around 5:00 pm and what do you see ? a torn up store and all the workers are tired and dragging. there orange smocks are dirty. they have been working really hard. then run over to lows. there red smocks are nice and clean and look like they just got up and they are ready to go. ha. i love it. hd rules. when i see more cars parked in the lows lots on sat. and not so many in the hd lot i will sale. but i have had this stock for the last 7 years and am happy. thanks again for the good reading. take care... jeff from baton rouge la.

To: John Carson who wrote (128)	3/31/1998 10:09:00 PM
From: Carter Patterson	Respond to of 1169

This sounds absolutely wonderful. Nonetheless, I cannot understand how overall GP% can increase so much if they increase imports to 10% from 3% and even if they make double the margin on the imports by becoming a direct importer ? This is really confusing to me. Here goes: At present, assume: Domestic 97% x 28% = 27% Imports 3% x 28% = 1% Combined = 28% Future, assume: Domestic 90% x 28% = 25% Imports 10% x 56% = 6% Combined = 31% The weighting between domestic and imports cannot give them such an overall lift, unless GP on imported goods was in the many 100%s . Rather unlikely. I have naturally had to make some assumptions. An overall 3% GP lift is nothing to sneeze at, but far removed from another 10%-15%. I wonder if the 10%-15% is multiplied by 28% rather than added to 28% ? Could the analyst be confused.